OTTAWA, ONTARIO--(Marketwired - April 1, 2014) - As the annual tax filing deadline approaches, CDIC reminds Canadians to consider the $100,000 coverage limit for deposit protection as they plan their personal finances.
"Many people use their tax refunds to buy term deposits for their RRSPs, which are eligible for CDIC protection," says CDIC President and CEO Michèle Bourque. "But they should not forget our $100,000 deposit insurance coverage includes both principal and interest. Check your balance. If your term deposit is now worth more than $100,000, that extra amount would not be protected by CDIC if your bank failed."
Ms. Bourque noted depositors can obtain more than $100,000 in coverage by depositing their money in CDIC's separately insured categories. For example, deposits in one name, joint deposits and trust deposits are each insured for up to $100,000.
Not all accounts and financial products that can be registered in an RRSP are eligible for CDIC coverage. For example, guaranteed investment certificates and other term deposits with an original term to maturity of five years are covered, but mutual funds, bonds, stocks and foreign currency accounts are not protected. For more information on coverage limits and eligible deposits, talk to your financial advisor or visit CDIC.ca.
Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation that contributes to the stability of the Canadian financial system by providing deposit insurance against the loss of eligible deposits at member institutions in the event of failure. Eligible deposits are automatically covered to a limit of $100,000 per insured category at each member institution. CDIC members include banks, federally regulated credit unions, as well as loan and trust companies and associations governed by the Cooperative Credit Associations Act that take deposits. CDIC is funded by premiums paid by member institutions and does not receive public funds to operate.